Apple’s all latest innovations have triggered the rapid competition in chip manufacturing industry. Now, chip design companies are concentrating more on Ulatrabook (thin laptops) and Smartphone chips rather than traditional desktop PCs and Smart TVs. They are focusing more on designing chips which consume less power and have high-efficiency rate. Intel is one of the renowned names in Chip industry. Today Intel has announced that it is dropping out its smart TV initiative in order to put more and more resources into its “top corporate imperatives”.

“As you can imagine, this was a tough decision – Intel led the creation and launch of the smart TV category and its first products. But, these collective actions will help to ensure that Intel has the best people focused on top business priorities,” a company spokeswoman said.

Intel had designed the chip for Smart TV, called as Digital Home Group, which is accountable for the consumer electronic version of the Atom SoC family. Boxee Box and Google TV, launched last year, are based on DHG’s CE4100 Atom SoC.

However, company will recuperate its operation in digital TV market and the members who were working on designing chips for digital TV will now concentrate on making chips for Ultrabook and smartphones. In May this year, Company announced that, in 2012, 40% of laptops will be Ultrabook and it’s planning to make a chip which consumes 15 watt power.

It’s interesting that Intel will make chips for consumer electronics market. But company will focused mainly on gateway and internet protocol set – top boxes.

Intel says “There is a ton of synergy between tablets and TVs and so the consumer electronics business within Intel will now be folded into the tablet division, headed by Doug Davis”.

It’s a sad new for consumers who want to purchase Smart TV, but in another way it’s also good news since Intel will now design chip for next generation Ultrabook and smartphones. Let’s hope Intel will go further and further and provide us the best chips in future.

What do you think about Intel’s latest move. will it pay off and company has chosen slippery road ? Do let us know your views.